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Bloomberg
Heavy Canadian crude isn’t getting any cheaper — but that hasn’t stopped companies from splurging on costly rail shipments.
Rail-car loadings hit a record 356,000 barrels a day in the week ended Jan. 11, up from a daily average of 296,000 barrels in December, according to Genscape Inc., which monitors some of the larger crude-by-rail terminals in Western Canada. The surge comes even heavy Western Canadian Select’s discount to the US benchmark reaches a level that makes rail transport inefficient.
Government-imposed production cuts totalling 325,000 barrels a day aren’t keeping oil from rolling down the tracks amid a pipeline bottleneck.